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Bill

HB 969

Property Tax - Payment in Lieu of Taxes Agreements - Broadband Service Providers

2025 Regular Session Introduced by Mike Griffith and 2 co-sponsors

Maryland law allows broadband providers to negotiate tax payments with local governments instead of paying standard property taxes on infrastructure.

Approved by the Governor - Chapter 209
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WeVote Research Nonpartisan
Bill Summary · HB 969

Legislative bill overview

HB 969 allows broadband service providers in Maryland to enter into Payment in Lieu of Taxes (PILOT) agreements with local jurisdictions as an alternative to traditional property tax obligations. The bill was signed into law in April 2025, enabling providers and municipalities to negotiate mutually agreed-upon payment arrangements for broadband infrastructure rather than relying on standard assessment and taxation methods.

Why is this important

Broadband infrastructure expansion is critical for rural and underserved communities, and PILOT agreements can incentivize providers to invest in areas that might otherwise be unprofitable. This flexibility may accelerate broadband deployment while allowing local governments to receive compensation for hosting infrastructure, though it also creates variations in how different communities are taxed.

Potential points of contention

  • Revenue uncertainty: Municipalities may receive less revenue through negotiated PILATs than they would through standard property tax assessment, creating budget challenges for local services
  • Equity concerns: Different jurisdictions could negotiate vastly different terms, potentially creating disparities in broadband investment and local government funding across the state
  • Long-term commitment: PILOT agreements may lack the stability of traditional property taxes, making municipal financial planning difficult if agreements expire or are renegotiated unfavorably

Compiled from official sources — confirm details with the bill’s official record.

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